Profitability of sparse district heating

The expansion of district heating into areas of low heat densities (heat sparse areas) Constitutes a challenge due to the higher distribution costs. The profitability of sparse district heating has been analysed from actual investments in 74 areas with 3227 one-family houses connected to district heating between 2000 and 2004 in Goteborg, Sweden. The profitability was estimated from a probable price model, a typical marginal heat generation cost, and the investments from the actual connections made. The analysis identified factors as the linear heat density and heat sold per house explaining the main variations in profitability. The profitability analysis was concluded with a competition analysis. The main conclusion is that sparse district heating is possible when reaching low investment costs for the local distribution network and low marginal costs for the heat generation. In Sweden, the general competitiveness of sparse district heating is facilitated by the high consumption taxes for fuel oil, natural gas, and electricity. Hence, it should be more difficult to introduce sparse district heating in other countries with low energy taxes. (c) 2008 published by Elsevier Ltd.

Länka till denna publikation

Dela på webben

Skapa referens, olika format (klipp och klistra)

BibTeX @article{Reidhav2008,author={Reidhav, Charlotte and Werner, S.},title={Profitability of sparse district heating},journal={Applied Energy},issn={0306-2619},volume={85},issue={9},pages={867-877},abstract={The expansion of district heating into areas of low heat densities (heat sparse areas) Constitutes a challenge due to the higher distribution costs. The profitability of sparse district heating has been analysed from actual investments in 74 areas with 3227 one-family houses connected to district heating between 2000 and 2004 in Goteborg, Sweden. The profitability was estimated from a probable price model, a typical marginal heat generation cost, and the investments from the actual connections made. The analysis identified factors as the linear heat density and heat sold per house explaining the main variations in profitability. The profitability analysis was concluded with a competition analysis. The main conclusion is that sparse district heating is possible when reaching low investment costs for the local distribution network and low marginal costs for the heat generation. In Sweden, the general competitiveness of sparse district heating is facilitated by the high consumption taxes for fuel oil, natural gas, and electricity. Hence, it should be more difficult to introduce sparse district heating in other countries with low energy taxes. (c) 2008 published by Elsevier Ltd.},year={2008},keywords={district heating, low heat density, distribution costs, DETACHED HOUSES },}

RefWorks RT Journal ArticleSR ElectronicID 99340A1 Reidhav, CharlotteA1 Werner, S.T1 Profitability of sparse district heatingYR 2008JF Applied EnergySN 0306-2619VO 85IS 9SP 867OP 877AB The expansion of district heating into areas of low heat densities (heat sparse areas) Constitutes a challenge due to the higher distribution costs. The profitability of sparse district heating has been analysed from actual investments in 74 areas with 3227 one-family houses connected to district heating between 2000 and 2004 in Goteborg, Sweden. The profitability was estimated from a probable price model, a typical marginal heat generation cost, and the investments from the actual connections made. The analysis identified factors as the linear heat density and heat sold per house explaining the main variations in profitability. The profitability analysis was concluded with a competition analysis. The main conclusion is that sparse district heating is possible when reaching low investment costs for the local distribution network and low marginal costs for the heat generation. In Sweden, the general competitiveness of sparse district heating is facilitated by the high consumption taxes for fuel oil, natural gas, and electricity. Hence, it should be more difficult to introduce sparse district heating in other countries with low energy taxes. (c) 2008 published by Elsevier Ltd.LA engDO 10.1016/j.apenergy.2008.01.006LK http://dx.doi.org/10.1016/j.apenergy.2008.01.006OL 30